£600m Construction Training Funding Announced

AHEAD OF the Spring Statement on Wednesday 26 March, the Chancellor has announced £600 million funding to train 60,000 skilled construction workers.

The increase in skilled workers aims to help deliver 1.5 million homes pledged by Government before the end of this Parliament.

Chancellor Rachel Reeves said: “We are determined to get Britain building again, that’s why we are taking on the blockers to build 1.5 million new homes and rebuild our roads, rail and energy infrastructure.

“But none of this is possible without the engineers, brickies, sparkies, and chippies to actually get the work done, which we are facing a massive shortage of. We’ve overhauled the planning system that is holding this country back, now we are gripping the lack of skilled construction workers.”

New Training Fund

The Office for National Statistics estimates that there are 35,000 construction job vacancies and employers report that over half of vacancies can’t be filled due to a lack of required skills. The vacancy rate is the highest of any sector and demand is expected to increase further.

The funding includes £100 million for 10 new Technical Excellence Colleges and £165m for more college construction courses.

Construction Skills Bootcamps will also be expanded, with £100 million for new entrants, returners, or upskillers.

Local Skills Improvement Plan areas will get £20 million to form partnerships between colleges and construction companies. The aim is to boost the number of teachers with construction experience in colleges.

Foundation Apprenticeships

Construction will also be one of the key sectors getting new £40 million-funded foundation apprenticeships from August 2025. Employers will get £2,000 for every foundation apprentice they take on and retain in the construction industry, on top of funded training costs through the Growth and Skills Levy.

Site Ready Funding

Meanwhile, an additional £100 million of government money, alongside a £32 million contribution from the Construction Industry Training Board (CITB) will fund 40,000 industry placements each year for all Level 2 and Level 3 learners, those studying NVQs, BTECs, T-levels, and advanced apprenticeships. This will help get learners ‘site-ready’ and address the ‘leaky pipeline’ of learners who don’t progress into the sector. The CITB will also double the size of their New Entrant Support Team (NEST) programme to support SMEs in recruiting, engaging, and retaining apprentices.

An additional £80 million capital fund will support employers to deliver bespoke training based on their needs.

Construction Skills Mission Board

Government is also sponsoring a new Construction Skills Mission Board, encouraging employers to work collaboratively on securing the future workforce needed to meet demand. Co-chaired by government and by Mark Reynolds, Executive Chair of Mace, the Board will develop and deliver a construction skills action plan and provide strategic leadership to the construction sector.

Construction Recruitment Campaign

The government’s communications campaigns will promote skills and their contribution to opportunity and growth for individuals and employers.

Job Centres will highlight the construction industry’s value for growth, celebrating employers who contribute significantly to workforce training, and emphasising the benefits of careers in construction.

The announcement changes to English and maths requirements and shorter apprenticeships.

INDUSTRY COMMENT

Significant Funding Package

Mark Reynolds, CLC Chair

Mark Reynolds, CLC Chair said: “It’s a hugely significant funding package, and the establishment of the Construction Skills Mission Board will enable us to collaborate with Government to drive change at pace.

“Understandably, construction firms across the country are looking for certainty of pipeline before they commit to investing in new jobs and skills – but this investment by the Chancellor will be critical in giving them the confidence they need. There is now no excuse – industry must embrace the Government’s growth mission and match their ambition.”

Vital Support

Tim Balcon, CITB CEO

Tim Balcon, CITB CEO said: “This package will provide vital support, where it is needed most – it will cut straight to the heart of the construction industry being able to address the challenge of building 1.5m new homes.

“As an industry, we now need to grasp this opportunity and play our part in delivering it. I genuinely believe this is a once-in-a-generation chance to us to recruit and train our workforce.”

Powerful Opportunity

NHBC stated, “The Government’s investment of £600 million is a pivotal moment for the housebuilding industry. With Government, training providers and the industry working together, we have a powerful and unique opportunity to equip thousands of people with the skills urgently needed to build the quality homes of tomorrow. By strengthening the construction workforce, we can boost productivity and grow a more skilled, inclusive and sustainable workforce and industry.”

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